How E-wallets pushed online buying during note-ban

While demonetisation largely impacted consumers across all cities, some top brands and even cab operators witnessed a huge boom in transactions during this period.

Sunil Pol

Aimed at curbing corruption and black money, government’s announcement of demonetising Rs 500 and Rs 1000 notes has had a big impact on the online shopping pattern of the Indian consumers and eCommerce businesses.

Analysing changes in online shoppers’ behavior post November 8, 2016 compared to equal number of days before the demonetisation announcement from September 3 to November 7 - Coupon Duniya, an online coupon and cashback player, has come up with an infographics detailing how Indian consumers’ shopping behaviour shaped up following the demonetisation announcement.

According to the report, since note ban, companies like Paytm, FreeCharge, MobiKwik, Domino’s Pizza and Yatra.com have gained larger traction. While in the digital push, consumer has encouragingly opted to transact through e-wallets, cab aggregators namely Ola and Uder, foodtech companies like Zomato, Swiggy and Dominos and online grocerers Big Basket and Grofers have observed surge in number of transactions on their platforms respectively during demonetisation.

Leading online players namely Amazon, Flipkart, Myntra, ShopClues, Snapdeal and Tata CLiQ have experienced 8 percent to 52 percent decline in transactions post November 8 2016 compared to pre-demonetisation period of September 13 toNovember 7. Among the largely hit brands by note ban were Amazon, Flipkart and Myntra, which observed 35%, 52% and 20% plunge in transaction respectively.

During the period, consumers from metros to tier II towns across all regions of the country spent significantly less on online shopping. While one side cities like Hissar, Dehradun, Aurangabad, Mumbai, Anantpur, and Bhopal have shown 62% to 49% reduction in spending on online shopping, cities like Hyderabad, Delhi-NCR, Jaipur, Chennai and Kolkata spent have shown little impact of note ban with reduction buying spanning merely from 5% to 26% percent. Among these Hissar has shown maximum 62% shrink in spending, whereas Hyderabad and Delhi-NCR had shown minimum 5% to 7% dip in spending.

Therefore, out of all the age groups flocking on online marketplaces for shopping, major decision making age group 35-44 reduced to shopping by -11.59%, 25-34 age group by -7.5% and 18-24 age group by -12% during demonetisation days.

Other insights
10,937 new users ordered from FoodPanda within first 10 days of demonetisation.

8,171 Pizza’s were ordered online from Domino’s in a span of 22 days post-demonetisation.

3,286 uber rides were taken in 6 days post demonetisation.

1,300 orders were placed through Healthkart in 12 days following demonetisation.

400 domestic flights were booked on Yatra.com in 10 days post-demonetisation.

‘Paytm Zomato Offer’ search term increased by 180%.

‘McDonalds Online Offer’ search term increased by 90%.

No Shave November and start of December saw Beardo sales grow 400%.

New York & Mara Bhayander had same amount of visits in 30 days post-demonetisation.